2 Answers
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What you're looking for is called a proxy server. There are several ways to set one up, but I use an encrypted SOCKS proxy personally. See this awesome Lifehacker tutorial for information on how to set one up. The great thing about this method is that no additional software is necessary, as it just tunnels through a SSH connection.

I run a proxy server for myself and a few friends, and it doesn't chew up much in the way of RAM or CPU cycles. It will obviously take up network resources, as it has to fetch pages and send them back to the client.

@cosmicbdog: Tunnelling through SSH, as tapped-out mentioned, would be easier than using OpenVPN. Also, polipo is an alternative to squid, which is a little easier to setup.
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paradroidApr 21 '12 at 2:12

Cheers @paradroid - I think I have set it up now tunneling via SSH. How can I be sure? Actually - I just went to what is my ip and i now have the ip address of my server. Very cool. Cheers!
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cosmicbdogApr 21 '12 at 2:15

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@cosmicbdog: You should select the other answer instead, seeing as you went for that solution. Cheers.
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paradroidApr 21 '12 at 2:25